Police and at least one major bank have uncovered a new ATM theft scam after three men were arrested for tampering with a Standard Bank ATM.

The new method has put security for these machines under more pressure following the recent spate of ATM bombings across the country.

Earlier reports stated that ATMs were being bombed at least twice daily and statistics indicated a 3000 percent increase in incidents in just three years.

Diep River, Cape Town, police spokesperson Inspector Keith Chandler said that on Friday, at about 6am, a Standard Bank ATM's alarm had been activated after three men had broken the side of the machine in a bid to remove the belt which moves cash through it.

"If they cut the belt, the client may cancel the transaction in the belief that there is something wrong with the machine when in fact the broken conveyer belt leaves the money hanging in the machine so that the client can't see it," he said.

After the client leaves what they believe is a faulty machine, the thieves walk up to the machine, open the side again and retrieve the client's money.

After the alarm was activated, members of Standard Bank's Risk Response Unit were dispatched to the scene where they caught three Mitchells Plain men, aged 22, 28 and 37.

The men appeared in the Wynberg (Cape Town) magistrate's court on Monday. One of the suspects is believed to have been on parole for just over a month. All three suspects have previous convictions on theft charges.

Chandler said it was the first time the Diep River police had been confronted with the new scam.